“President Trump’s escalation of a trade war with China is about to hit tech on two important fronts, putting it smack dab in the middle of what some are calling a Tech Cold War,” Jon Swartz writes for Barron’s. “The initiatives, expected to be announced by the end of the week, would limit China’s ability to invest in the U.S. tech sector, and block additional technology exports to Beijing.”

“Trump’s plan, first reported by the Wall Street Journal late Sunday, immediately drew a cautionary note from the trade group Information Technology Industry Council, whose members include Apple, Amazon.com and Alphabet,” Swartz writes. “China’s influence on tech runs far and deep. A recent study by the U.S.-China Economic and Security Review Commission concluded seven major American tech companies–Cisco Systems, Dell Technologies, HP, IBM, Intel, Microsoft, and Unisys — source more than half of their products and components from China. Shares of Intel, Microsoft, HP, IBM, Cisco, Dell, and Unisys each are down more than 2% today.”

The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!U.S. President Trump via Twitter, June 24, 2018

“Last week, Terry Gou, chairman of Foxconn Technology Group–a key iPhone assembler that will bring an assembly facility to Wisconsin and create up to 13,000 new jobs–told shareholders at the company’s annual meeting in Taiwan that ‘we have a number of response plans.’ ‘The trade war is not about trade, but it is a tech war, and it is a manufacturing war,’ Gou said,” Swartz writes. “Among the most vulnerable companies is Apple, which has bet big in China. Nearly 20% of its fiscal year revenue ($44.7 billion) came from the region, where it shipped more than 41 million iPhones in that same time. Apple shares are down more than 2% today… (Apple did not immediately respond to an email seeking comment on Trump’s plan.)”

Read more in the full article here.

MacDailyNews Take: It’ll be interesting to see how it all shakes out; if the imbalance becomes more balanced in the end.

I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018

SEE ALSO:
U.S. President Trump puts tech in trade war crosshairs with planned curb on China investment – June 25, 2018
The Trump administration told Apple it would not place tariffs on iPhones assembled in China – June 19, 2018
Chinese stocks end at 2-year low, Apple suppliers sink on trade-war concerns – June 19, 2018
Why Apple CEO Tim Cook is acting like tech’s top diplomat – June 18, 2018
Apple CEO Tim Cook doesn’t expect a full-blown trade war between the U.S. and China – June 5, 2018
President Trump and Apple CEO Cook meet at White House with trade the focus – April 25, 2018
Apple CEO Cook to meet with President Trump – April 25, 2018
Why Apple stock can withstand a Chinese trade war – April 5, 2018
Apple CEO Tim Cook heads to China as President Trump orders 25 percent tariffs on up to $60 billion in Chinese imports – March 23, 2018
BoA Merrill Lynch: Apple is prepping a ‘foldable’ iPhone; U.S. and China trade tensions not an issue for Apple – March 23, 2018
Designed in California. Assembled in China. How Apple’s iPhone skews U.S. trade deficit – March 21, 2018
President Trump blocks Broadcom-Qualcomm deal over China concerns – March 13, 2018
Elon Musk sides with President Trump on trade with China – March 8, 2018
Analyst: President Trump’s tariff impact on Apple would be just a ’rounding error’ – March 7, 2018
Apple and other tech firms caught in crossfire as U.S.-China trade war looms – March 7, 2018
Apple Macs caught up in President Trump’s aluminum tariff plan – March 2, 2018